A904-30Rh Fresh Rebuild. No 3rd gear, Please Help

Hey guys, I'm new here and just really need help because i'm stumped.

97 model 904 or 30rh. I have read post with people who have had this problem. It was usually the first clutch inner piston seal, governor stuck, or the valve body.

I have the transmission torn back apart and am inspecting everything. Front clutch seal is perfect. I have questions about the governor though. The inner weight slides into the outer weight just fine but gets hung up if you try and push it all the way through. Is that normal? Does the spring ever compress enough to allow the inner weight to go that far through the outer weight?

The transmission had perfect reverse and smooth shifting manual and auto. Just stopped at 35-40 and reved high.

Forward clutch drum has a 3 way thrust washer. A piece is broken off on the drum but I cant understand how it would cause a problem? Please let me know what you think.

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